Another failed crypto company agrees to settle with SEC

TheStreet’s Conway Gittens brings the latest business news from the New York Stock Exchange as markets close for trading on Monday, June 17.

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Full Video Transcript Below:

CONWAY GITTENS: This is Conway Gittens, reporting from the New York Stock Exchange. Here’s what we’ll be watching on TheStreet today.

The Dow ended its five-day losing streak, while the S&P 500 and Nasdaq reached record closing highs. Investors believe inflation is on track to soften enough to encourage the Fed to cut interest rates this year.

Wall Street’s eyes will be focused on economic data including retail sales, industrial production and new home construction during this holiday-shortened week.

On the other hand, another big name in the crypto world is being forced to pay real dollars for his digital crimes. A judge, Do Kwon, approved a $4.5 billion settlement between bankrupt crypto company Terraform Labs and the Securities and Exchange Commission. In April, a jury unanimously found Kwon and TerraLabs guilty of securities fraud.

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Kwon has been in hiding for years after the implosion of his two digital stablecoins, Luna and Terra. While stablecoins are backed by real assets, Kwon’s coins were revealed to be backed by a network of complex codes. When an algorithm failed in 2022, the market cap was $40 billion; Hedge funds collapsed and investors rushed for the exit.

Kwon is not alone in crypto corruption. Changpeng Zhao, president of Binance, the world’s largest crypto company, was sentenced to four months in prison in April for money laundering. He also has to lose $4.3 billion. And then there’s FTX and Sam Bankman-Fried. He was sentenced to 25 years in prison in March for fraud and conspiracy. The judge in this case ordered the seizure of $11 billion in assets.

This will be enough for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens from TheStreet.

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